Technical analysis: key levels for gold and crude

Gold has been knocked back in the early part of the session, while oil looks to add to the foundations built at the end of last year. 

Oil rig
Source: Bloomberg

Gold could drop to $1117

Despite a steady push higher into the end of the year, gold has faltered in recent sessions. The $1166 level is acting as resistance for the time being, with some short-term support found at $1150.

If this holds then bulls need to push through $1166 and then move above $1180. A failure to hold $1150 brings the possibility of a move to $1134 and then $1117. 

Brent rally continues

The rally goes on here, with little sign that it is beginning to run out of momentum. Indeed, the indecision of last week has given way to more buying, with the price heading on towards resistance at $57.83 and then $58.88.

Only a move below $56 would indicate that a drop is in store for the commodity

WTI could find support at $52.65

The price held on to $54 throughout the final sessions of the year, and has pushed on since then. We now look to resistance at $55.39 and then $56.18.

It will need a move below $54 to suggest weakness ahead, with the price likely to find support around $53.44 and then $52.65. 

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